- Ethereum closes the Asian session on Monday with losses after $180 pivotal levels failed to hold.
- Technical levels paint a bad technical picture for Ethereum in the short but key support at $176 -$178 will come in handy.
Ethereum has been in the business of creating a lower high pattern since the break above $180 failed to make headway on Sunday. Following the retreat that refreshed the lows around $165 on Friday, the buyers regained control over the price. Most of the price action was in an uptrend over the weekend session. Unfortunately, Ether still lacked a catalyst to win the war towards $200.
At press time, ETH/USD is pressing down on the first support at $176 – $178. A sharp but brief drop did not spare the new pivotal at $180. Besides, the immediate upside is limited by descending trendline and broken trendline support.
On the brighter side, Ethereum is holding ground above the moving averages; the 50 SMA 1-hour at $177.60 and the 100 SMA 1-hour at $175.66. The gap between the 50 SMA is widening to show that buying power is still present despite the correction.
Meanwhile, The Relative Strength Index (RSI) is continuing with the retreat from the overbought. If the RSI can hold above the average, a recovery above $180 is imminent. The Moving Average Convergence Divergence (MACD), has a bearish bias. Besides, it is almost crossing towards the negative zone. The increasing negative divergence highlights that the sellers have the upper hand.